Federal and state taxation
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Schedules K-2 and K-3 — What Transportation Companies Need to Know
The IRS has released final versions of two new international-related tax filing schedules that are being added to passthrough entity returns (including Forms 1065, 8865, and 1120-S). Many people may, at first glance, may be lead to believe that K-2 and K-2 reporting matters are primarily a global tax issue; however, nearly every pass-through entity […]
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Year End Tax Planning Ideas
It’s that time of year again. We’re past Thanksgiving, into December and the year is almost over. For a lot of business owners a familiar feeling is starting to set in. It’s panic. They’ve just seen the latest numbers (hopefully they look good), and the first thing that pops in their head is how can […]
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A Big Break for Per Diems?
There has been a significant amount of relief passed through various bills due to the coronavirus. While the employee retention credit, paid leave credit and paycheck protection program received a lot of the glory, something smaller yet potentially impactful passed with the Consolidated Appropriations Act, 2021 (CAA 2021). The CAA 2021 includes a provision that […]
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Could a Reconciliation Bill be Tied to the Infrastructure Bill?
Aside from the major news of the $1 trillion infrastructure bill that passed the Senate, the Senate also approved a $3.5 trillion budget plan. This budget plan may be setting the stage for future tax policy changes. Like the infrastructure bill, a budget resolution also needs to go through the House where it’s future is […]
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Senate Approves Bipartisan Infrastructure Bill
Senators finished up working through the procedural hurdles, and have spent the last few days arguing over the potential amendments. After much debate, the bipartisan infrastructure bill was approved in the Senate, sending the bill to the House where it faces a complicated future. House Speaker Pelosi has said that the House will not pass […]
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Potential Legislation Could Eliminate Q4 ERC Benefits
Late Sunday night, the bill text of the bi-partisan infrastructure bill (H.R. 3684) was finally released to the public. As expected, it included funding for roads, bridges, rail, ports, broadband, and waterworks, as well as some energy/climate provisions. The bill has been presented as a bill with no new tax hikes, and is still waiting […]
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First Advance Child Tax Credits Issued Today
The first of the monthly child tax credit advances were issued today. The IRS issued close to $15 billion of checks to individuals and families today. Most payments were for $250 per child, and $300 if the child is under 6. We mentioned a few weeks ago that individuals could opt out of the advanced […]
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Infrastructure Bill Update
On Tuesday night, Senate Majority Leader Chuck Schumer announced that the Senate Democrats have agreed to a $3.5 trillion spending/tax plan. Schumer indicated that the bill would fund every major program that President Biden had laid out in the the American Jobs Plan and American Families Plan. Details are expected to be announced later today. […]
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CERTS Grants are Taxable
The IRS released some FAQs on the CERTS grants yesterday. The IRS indicated that the CERTS grants are taxable to the recipient. They also indicated that the expenditures the grant money is spent on, such as payroll costs, are still deductible expenses to the extent they would normally be deductible expenses. The IRS released similar […]
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SALT Deductions and Entity-Level Elections
In the transportation world, it’s not uncommon for companies to file in income and franchise tax returns in multiple states depending upon where they are located, where they have employees, and where they are driving. For some companies, it can mean filing returns in 30+ states/jurisdictions. With a $10,000 state and local tax (SALT) limitation […]